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Identifying and Prioritizing BPM Projects  Based on Quick Wins  and Clear Financial Benefits Six Sigma IQ Webinar 24 March...
Background <ul><li>Business process management (BPM) focused on aligning organizations with the wants and needs of clients...
Classic Approaches Business Goals Value Stream Mapping “ Where’s the pain?” SCOPE TIMEFRAME
Projects Driven by Business Goals <ul><li>A vision of what the organization needs to be… </li></ul><ul><ul><li>Customers, ...
Goals – Processes - Measures Division Dashboards Sector Dashboard • Used to Manage the Core Business Processes • Defined b...
Performance Gap Analysis Watch De-Emphasize Focus Improvement Efforts Protect/Optimize Low High Process Maturity/Performan...
Cause & Effect Diagram <ul><li>Internal conflicts </li></ul><ul><li>Lack of skills / resources </li></ul><ul><li>Ad hoc tr...
Summary <ul><li>Your approach for selecting process improvement projects should be based on several factors </li></ul><ul>...
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Identifying and Prioritizing BPM Projects Based on Quick Wins and Clear Financial Benefits

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We all know that process improvement projects bring clear benefits to the company: less waste, decreased cycle and throughput time, less defects – just to name a few. But determining which projects to undertake for maximum return can be a challenge.  Dr. Hefner will present several considerations for selecting which improvement projects to invest in.

During this session you will learn:
* How to generate process improvement projects based on your business goals
* The importance of internal and external customers in identifying improvements
* How to prioritize projects with and without direct ROI
* How project selection matures over time

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Identifying and Prioritizing BPM Projects Based on Quick Wins and Clear Financial Benefits

  1. 1. Identifying and Prioritizing BPM Projects Based on Quick Wins and Clear Financial Benefits Six Sigma IQ Webinar 24 March 2009 Rick Hefner Director, Process Management Northrop Grumman Corporation
  2. 2. Background <ul><li>Business process management (BPM) focused on aligning organizations with the wants and needs of clients </li></ul><ul><li>Continuous process improvement is required due to: </li></ul><ul><ul><li>Changing wants and needs of the client base </li></ul></ul><ul><ul><li>Changes in the competition and their offerings </li></ul></ul><ul><ul><li>Changes in the business environment </li></ul></ul><ul><ul><li>Changes in the supporting technologies </li></ul></ul><ul><li>How does an organization determine which improvement projects will yield maximum return? </li></ul>
  3. 3. Classic Approaches Business Goals Value Stream Mapping “ Where’s the pain?” SCOPE TIMEFRAME
  4. 4. Projects Driven by Business Goals <ul><li>A vision of what the organization needs to be… </li></ul><ul><ul><li>Customers, needs and wants, products and services </li></ul></ul><ul><ul><li>Benchmarking with competitors </li></ul></ul><ul><li>What are the business goals? How is success measured? </li></ul><ul><ul><li>Profitability, market share, speed, quality, etc. </li></ul></ul><ul><ul><li>Gaps between “as-is” and “should-be” </li></ul></ul><ul><li>Which processes are critical to meeting these goals… </li></ul><ul><ul><li>Process maps, swim-lanes </li></ul></ul><ul><ul><li>Value stream mapping </li></ul></ul><ul><li>What problems exist in these processes? </li></ul><ul><ul><li>External/internal customer perspectives </li></ul></ul><ul><ul><li>Unwanted variation </li></ul></ul>
  5. 5. Goals – Processes - Measures Division Dashboards Sector Dashboard • Used to Manage the Core Business Processes • Defined by Business Executives • Owned by Business Executives Enabling Processes Financial Management Information Management Governance Compliance Relationship Management Technology/Product Development Employee Management Portfolio Management Business Development Program Execution Core Processes Results of Lean Six Sigma Projects seen in improved business performance • Productivity • Profitable Growth Key Business Questions Sub Processes Gaps & Goals ROI Gate … . Subcontractor Management Mission Systems Business Objectives • Customer Satisfaction • Operational Effectiveness
  6. 6. Performance Gap Analysis Watch De-Emphasize Focus Improvement Efforts Protect/Optimize Low High Process Maturity/Performance 1 2 3 4 6 7 8 9 10 12 13 14 15 High Low 11 Criticality to Operations/Function Lean Six Sigma <ul><li>Conformance </li></ul><ul><li>Process </li></ul><ul><li>Definition/Design </li></ul><ul><li>Lean Tools </li></ul><ul><li>Best Practices </li></ul>5 Focus on 2, 5 & 9 for process improvement Based on goals, optimize 3 & 11 and sustain 1, 4, 5 & 14
  7. 7. Cause & Effect Diagram <ul><li>Internal conflicts </li></ul><ul><li>Lack of skills / resources </li></ul><ul><li>Ad hoc training </li></ul><ul><li>Processes are improvised </li></ul><ul><li>No process discipline </li></ul><ul><li>Tools & technology are not standardized </li></ul><ul><li>Equipment is acquired on an ad hoc basis </li></ul><ul><li>Demand shifts </li></ul><ul><li>Market turbulence </li></ul><ul><li>Measurement is faulty and/or incomplete </li></ul><ul><li>Measurement inconsistency </li></ul><ul><li>Lack of skills </li></ul><ul><li>Ad hoc training </li></ul>Effect Measurements Methods Manpower (People) Machines Materials Mother Nature (Environment) Service Industries (4P’s): Policies, Procedures, People, Plant/Technologies
  8. 8. Summary <ul><li>Your approach for selecting process improvement projects should be based on several factors </li></ul><ul><ul><li>Top-down analysis based on your business goals </li></ul></ul><ul><ul><li>Identification of critical business processes </li></ul></ul><ul><ul><li>Viewpoints of internal and external customers </li></ul></ul><ul><ul><li>Direct and indirect ROI </li></ul></ul><ul><ul><li>Maturing over time </li></ul></ul>

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